The Star owner launches counter-bid to Packer's casino proposal

By Sean Nicholls

9 April 2013 — 9:59am

The owner of The Star casino has launched a counter-bid to James Packer's proposal for a $1 billion casino and hotel complex at Barangaroo, asking the NSW government to extend its exclusive gambling licence beyond 2019.

The Premier, Barry O'Farrell, has announced that the infrastructure committee of state cabinet agreed on Monday night to consider the bid from Echo Entertainment under stage two of its unsolicited proposals process.

Casino plan: James Packer.

Photo: Rob Homer

He said if the government agrees to Echo's plan, it will prevent the proposal by Mr Packer's company, Crown Ltd, from going ahead. This is because the Crown proposal relies on the government ending its exclusivity agreement with Echo when it expires in November 2019.

Crown has proposed construction of a six-star hotel and a VIP-only high roller casino at Barangaroo. Its pitch to the government has highlighted the tourism potential of creating an "integrated resort" as it will target wealthy Asian gamblers.

Counter-bid: Star casino.

Photo: Simon Alekna

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Mr O'Farrell said part of Echo’s proposal is for "additional investment in and around The Star to develop a globally competitive integrated resort at Pyrmont, including investment in local transport initiatives".

He also revealed the government has hired retired Court of Appeal judge Ken Handley to provide "probity supervision and advice".

Mr Handley will work alongside the former banker David Murray, who is chairing the committee examining the Crown proposal.

Both proposals will now be dealt with in parallel by the NSW government. The assessment reports are due at the end of May.

In a statement to the stock exchange on Tuesday morning, Echo managing director and chief executive John Redmond said The Star, at Pyrmont, was "Sydney’s only integrated resort" and the proposal would complement the government's redevelopment of Darling Harbour.

Mr Redmond said the company looked forward to working with the government "to develop a compelling proposal that could result in major additional investment in tourism infrastructure in the heart of Sydney’s tourism precinct of Darling Harbour and Pyrmont".

The announcement places Crown in an unusual position, given its shareholding in Echo Entertainment.

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Crown holds a 10 per cent stake in Echo and has applied to gambling authorities in NSW and Queensland for permission to increase its stake.